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Ad libitum [116K]
2 years ago
14

You are bullish on Telecom stock. The current market price is $100 per share, and you have $15,000 of your own to invest. You bo

rrow an additional $15,000 from your broker at an interest rate of 6.0% per year and invest $30,000 in the stock. a. What will be your rate of return if the price of Telecom stock goes up by 8% during the next year? (Ignore the expected dividend.) (Round your answer to 2 decimal places.)
Business
1 answer:
likoan [24]2 years ago
7 0

Answer:

10%

Explanation:

Value of investment in the beginning = $30,000

Value of investment at the end = $30,000 (1 + 0.08)

                                                    = $30,000 × 1.08

                                                    = $32,400

Interest paid = $15,000 × 6%

                     = $900

Rate of return:

=\frac{Value\ at\ the\ end-Value\ in\ beginning-Interest}{Total\ amount-Borrowed\ amount}\times100

=\frac{32,400-30,000-900}{30,000-15,000}\times 100

=\frac{1,500}{15,000}\times 100

      = 10%

Rate of return is 10% if the price of Telecom stock goes up by 8% during the next year.

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in creating the master budget, the second budget a company prepares is the production budget. a. True b. False
Rzqust [24]

Answer:

In creating the master budget, the second budget a company prepares is the production budget.

a. True

Explanation:

When a company prepares the master budget, it first prepares the sales budget, followed by the production budget.  The production budget calculates the costs of materials, labor, and overhead based on the number of units to be manufactured within the budget period.  The units of products are derived from the sales forecast and the planned amount of ending finished goods inventory.

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3 years ago
Companies that outsource research and development and design jobs:
MissTica

Answer:

The correct answer is letter "B": run the risk of overseas companies using the information to produce competitive products.

Explanation:

Outsourcing is an approach used by companies to take part of their operations abroad where labor costs and materials are cheaper. This is a good strategy to avoid being subject to stiff regulations imposed by the government that could affect the business.  

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3 years ago
A dividend is _____.
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I think it is C.Money a company shares with stockholders.
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3 years ago
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Chapter 3 Homework Questions 3, 4 3. Balance Sheet. Construct a balance sheet for Sophie’s Sofas given the following data. What
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Answer:

<u>BALANCE SHEET</u>

Assets                                            Liabilities

Cash                           10,000        Account Payable     17,000

Account Receivable 22,000        Long term               170,000

Inventory                 200,000       Total Liab                187,000

non-current assets  100,000        Equity                      145,000 (A)

total assets              332,000     Total liab + SE         332,000

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Net income 8,000

Explanation:

(A) solve through the accounting equation

assets = laib + equity

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Q4

income tax expense: 2,000

rate 20%

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EBIT: EBT + interest expense

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3 years ago
Congress passed a law imposing penalties for displaying "indecent" material online where children could see it. If the U.S. Supr
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Answer:

1) True

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